Jakarta. Indonesian tycoon Sukanto Tanoto, founder of RGE (Royal Golden Eagle) Group, is acquiring a luxurious hotel in Shanghai from the financially troubled Chinese property developer, Dalian Wanda Group. 

Real estate website Mingtiandi reported that Pacific Eagle, of the Royal Golden Eagle (RGE) family-owned group, could be paying as much as 1.7 billion yuan (Rp 3.7 trillion) for Wanda Reign on the Bund, a luxury hotel with 193 rooms located in the historic waterfront Bund district in Shanghai.

“As a long-term investor, Pacific Eagle Real Estate is acquiring Shanghai Wanda Reign on the Bund hotel for capital preservation,” a spokesman for Pacific Eagle told Forbes on Jan.3, 2024.

Wanda Reign, which opened in June 2016, cost 3.4 billion yuan to build, making it the most expensive hotel in China with a seven-star rating.

According to the company's website, Pacific Eagle's real estate investments include the Mondrian Duxton Singapore Hotel, and Tanglin Shopping Centre in Singapore's Orchard Road which was acquired in 2022 for S$868 million (Rp 10 trillion).

In addition to property investments in Singapore, Pacific Eagle, in collaboration with China Resources Capital, is also developing the Pacific Eagle Center, a 21-story office building in Beijing. The company is also working on Prospect Park, a business district comprising 19 office blocks in the capital of China, and a residential development in Rizhao, Shandong Province, China. Outside Asia, Pacific Eagle owns commercial properties in London and Munich.

Apart from his real estate ventures, Sukanto has expanded his business into the tissue manufacturing sector. Last month, RGE acquired Vinda International Holdings, the largest tissue producer in China, for HK$26 billion (Rp 51 trillion). This deal followed the acquisition of OL Papeis Brasil by RGE Bracel in January 2023, where the group invested $500 million to establish tissue and pulp facilities in Brazil.

Tanoto, aged 74, founded RGE over 50 years ago when he opened a modest spare parts shop in Medan. The business has since evolved into a global company with over 60,000 employees, operating in pulp and paper, palm oil, and energy sectors.

With a net worth of $3.15 billion, Tanoto secured the 20th position in Forbes' list of the 50 Richest People in Indonesia.